This month’s brutal stock run was a “dress rehearsal” for what’s to come, JPMorgan says

• Last week’s market selloff was potentially just a glimpse of what’s to come, JPMorgan says.

• Growth concerns are likely to be the next big trigger, analysts said.

• The market this week is back in the Goldilocks zone after some encouraging data points.

The sudden sell-off that triggered the stock market’s biggest loss in two years may have been a preview of what’s to come, according to JPMorgan.

The bank’s analysts said the combined worries about slowing economic growth and the performance of the shipping trade were too much for the market to handle immediately.

Since then, however, the stock market has clawed back all of its losses and found itself basking in the glow of positive economic updates this week, leading many on Wall Street to conclude that the event was an overreaction to a momentary data drop.

“Many market participants are dismissing the recent burst of various crowded trades as a fluke or blip, but we see it more as a dress rehearsal for what’s to come,” JPMorgan analysts said in a note on Thursday.

This month’s selloff came as U.S. unemployment rose and accelerated as the Japanese market fell 12.4 percent, its biggest drop since the “Black Monday” of 1987. A resurgence of so- of the so-called yen carry has emerged as the big culprit rocking global stocks. .

Investors have borrowed yen at low rates in Japan for the past two years, leaving them reeling and rushing to sell to meet margin calls after the Bank of Japan’s surprise rate hike.

While massive, analysts predict that concerns about commercial shipping will not be the trigger for future volatility as many investors will not rush back into the strategy after being caught off guard this month.

“Carry trades may eventually become an issue again, but with burned investors, not everyone will reinstate these trades, so it should be more difficult to reach old highs,” the analysts said.

“Instead, we see the increased risk of re-emergence as the likely trigger,” they added.

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